Need help with part 1

Problem 1, Chapter 22 (10 points). Shown below are the comparative financial statements for ABC Company. In 2012, the FASB released a new financial accounting standard which changed the way pension liabilities and expenses are accounted for. The pension expenses and pension liabilities (part of "Accrued liabilities" and "Expenses" below) under the old approach (debit the expense and credit the liability) were $17,000 for 2014, $14,000 for 2013, and $36,000 for years prior to 2013. Accrued expenses and accrued liabilities under the new approach are $24,000 for 2014, $19,000 for 2013, and $43,000 for years prior to 2013. ABC Company is in a 30% tax bracket. Required: Prepare journal entries on the following page to record the effect of the change in GAAP. The tax effect of the change must also be considered. On the financial statements on the next page, draw a line through numbers that will change and enter the updated numbers, such that your finished product will be the comparative financial statements after accounting for the change in GAAP. Be sure to clearly show where the revised numbers will go. Show any computations. 1. 2. 2014 $17,000 24,000 2013 $14,000 19,000 2012 and earlier $36,000 43,000 Pension expense old approach Pension expense - new approach Difference Income tax effect Difference, net of tax General Journal Debit Credit Problem 1, Chapter 22 (10 points). Shown below are the comparative financial statements for ABC Company. In 2012, the FASB released a new financial accounting standard which changed the way pension liabilities and expenses are accounted for. The pension expenses and pension liabilities (part of "Accrued liabilities" and "Expenses" below) under the old approach (debit the expense and credit the liability) were $17,000 for 2014, $14,000 for 2013, and $36,000 for years prior to 2013. Accrued expenses and accrued liabilities under the new approach are $24,000 for 2014, $19,000 for 2013, and $43,000 for years prior to 2013. ABC Company is in a 30% tax bracket. Required: Prepare journal entries on the following page to record the effect of the change in GAAP. The tax effect of the change must also be considered. On the financial statements on the next page, draw a line through numbers that will change and enter the updated numbers, such that your finished product will be the comparative financial statements after accounting for the change in GAAP. Be sure to clearly show where the revised numbers will go. Show any computations. 1. 2. 2014 $17,000 24,000 2013 $14,000 19,000 2012 and earlier $36,000 43,000 Pension expense old approach Pension expense - new approach Difference Income tax effect Difference, net of tax General Journal Debit Credit